Are Car Trade-Ins Worth It?
There are several factors to determine whether you trade your car in. You need to take into consideration the shape, mileage, and demand of the car model that you have now. Whether you decide to trade your car in or sell it outright, the car needs to be cleaned and checked for problems.
Here are three major things to consider, brought to you by Service King Ingram in San Antonio, TX.
Advantages of Selling Your Car Outright
You will most likely get more money from your car if you sell it to an individual. This can be anywhere from 10 to 20 percent over what a dealer might give you on a trade in. If your car has a lot of miles or is not a later model, selling it outright will be easier than trying to get a dealer to buy a car that will be hard for the dealership to sell. Even if your car is a late model with low miles, the dealer might already have several on the lot similar to it that is not selling. The dealer will not want another car tying up inventory and will offer a low price for your vehicle.
Disadvantages of Selling Your Vehicle to an Individual
Trying to sell your car outright might take several weeks or even months to sell. It is also time-consuming while meeting with potential buyers while they look the vehicle over and test drive it. You might not even like all these strangers knowing where you live. If you have already purchased another car, you might not have no place to keep your previous one while trying to sell it.
The Advantages of Selling to a Dealer
Once you agree to a fair price with a dealership, you only have to turn the vehicle over and don't have to worry about dealing with multiple people. There are many car dealers and if you can't come to terms with one, you can always check out a different dealership. They might have a different inventory and want your car since they have a different customer base.
Once you come to an agreement on pricing, you can use your trade-in for a down payment. This will lower the price of the car and in most states will only be taxed on the lower price. If the original price was $20,000 and you get $6,000 for a trade-in, you would only be taxed for $14,000. Trading in your car can be a lot more convenient.
Service King Ingram, 7602 Ingram Rd, San Antonio, TX 78251
Sources: Consumer Reports and Yahoo
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